(316) 330-4110Wichita Irrevocable Trust Attorney
You Need a Lawyer That Understands Asset Protection!
Trusts are an invaluable tool when it comes to estate planning. They offer a plethora of tools that you can use to make the probate process easier for your family’s future, as well as ensure your estate is being managed in a way that benefits you before and after you pass away.
Irrevocable trusts are tricky to understand. How can creating a trust that you have little control over, that can’t be easily changed, and is difficult to terminate help you and your family?
The Law Office of Andrew Rowe is here to help you understand the ins and outs of irrevocable trusts and how they can be implemented into your estate plan.
What is an Irrevocable Trust?
Irrevocable trusts are a valuable tool in the estate planning arsenal. They have stringent laws and regulations that must be followed but offer extra benefits that revocable trusts lack.
An irrevocable trust is a type of trust that allows you to transfer assets to it, much like revocable trusts. Similar to revocable trusts, the person who creates the trust and transfers assets to it is called the grantor. The person who manages the trust and its assets is called the trustee. The trustee and grantor can be the same person. The people or organizations who receive assets from the trust are called the beneficiaries.
Unlike revocable trusts, an irrevocable trust can not be easily modified or canceled. The terms of the trust cannot be changed without consent from the beneficiaries or a court order. This means that you may be at the whim of your beneficiaries if you suddenly need access to the assets within the trust.
What Are the Benefits of an Irrevocable Trust?
As you can imagine, the benefits of an irrevocable trust must be pretty substantial if people are willing to put their assets in one and then not have the ability to access or change the arrangement without jumping through some major legal hoops.
Similar to revocable trusts, irrevocable trusts are invaluable to estate planning because it makes probate easier to navigate. Trusts are subject to the probate process the same way that the rest of your estate is. Trusts are private, while probate is public. Your estate will need to be distributed during probate, while your trusts likely won’t have to wait for probate, meaning your family members may have access to the assets within the trust faster—all fantastic reasons to create a trust.
Irrevocable have different benefits than revocable trusts. Because of the stringent rules that govern irrevocable trusts, you receive certain benefits that will benefit you while you are alive and may benefit your family’s future after you pass away.
Tax Benefits
There are certain irrevocable trusts that allow you to minimize the burden of estate taxes for your family members. With proper estate planning, your family may be able to completely avoid paying taxes on your estate after you die. This can be an economic boon, depending on the size and value of your estate.
Protect Loved Ones With Disabilities
Special needs trusts, which are a specific type of irrevocable trust, allow you to place assets within the trust that the beneficiary will receive after you pass away. If someone who relies on government benefits were to suddenly receive an inheritance, it could be enough to make them ineligible for these necessary benefits. A special needs trust allows you to care for them after you are gone without jeopardizing their life-saving benefits.
Asset Protection
A properly implemented and managed irrevocable trust has the added benefit of protecting trust assets from potential creditors. If you are in a profession that is subject to a lawsuit, such as a medical professional, you may benefit from the protections offered by an irrevocable trust. The same is true for your beneficiaries, who may be dependent on the wealth within the trust to maintain a standard of living they are accustomed to once you pass away.
What are the Negatives?
Irrevocable trusts offer many benefits to their creators and to those who may rely on their estate when they are gone. However, an irrevocable trust is not perfect for everyone.
Irrevocable trusts are one of the few estate planning services that primarily benefit the wealthy. If your estate is not particularly large, then the benefits may not apply to your situation. Why jump through so many difficult hoops if the taxes owed on your estate aren’t unreasonable?
While an irrevocable trust may be valuable for protecting your assets from creditors, a court can reclaim the assets if it feels you unjustly transferred funds to the trust in contemplation of a lawsuit.
The same is true for individuals who are placing their assets in an irrevocable trust in an effort to secure Medicaid benefits. In both instances, whether seeking to protect your assets or become eligible for Medicaid, in Kansas, the trust must exist for five years to offer any form of asset protection.
An Irrevocable Trust May Not Be For You But There Are Other Estate Planning Options!
It is important to consider all options when trying to implement the best estate planning options. Perhaps an irrevocable trust isn’t the right fit for you, but there are plenty of estate planning services that can offer you what you need for your unique circumstances.
Should You Hire an Irrevocable Trust Attorney?
Irrevocable trusts have many regulations and laws that govern how the trust is handled. Falling out of favor can be an expensive endeavor, especially if you think your assets are being protected when they’re not. Moreover, a trust is a living document. If the laws and regulations that govern trusts, you may find yourself out of compliance without ever knowing.
Hiring an attorney knowledgeable about irrevocable trust means you can rest assured that your family is in good hands and that your trust documents are valid and secure.
Call 316-330-4110 to schedule a consultation with The Law Office of Andrew Rowe. Our clients are our top priority. We work with you to create a trust that works for you and your family while ensuring it remains compliant with all governing bodies. Trust laws can be intimidating, and it can be hard to know where to start or which trust will benefit you and your family the most. Don’t rely on an online DIY service that is one-and-done. Work with Andrew Rowe, JD, and know you are in good hands!